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HomeMy WebLinkAbout07182011 City Council Work Session Notes - Water/Wastewater (d61 WORK SESSION NOTES ON 1 itiskAy vl�W n avrew Purpose: Present: AA, , _ Q Arai cue Qsuncil M_qmbers Present:j\cA{r y 'A a i i Alb 5 1 0,CA.Ne;.. A. .A . .1.w i a a i - {.-a _ :L� Called by: Co Vt C-I Time -(A')e Date 1-1 **********************>kik=kik*************************** Zp(411J C�CYC�3r • • DO-c-c OV L 1QQoN) \\P‘ NC.\ 3 Orti — \Ctm li 11 .- , - •,,, - ) , .. • . la r" — 1 •,.._-,:':,..,,....•.,...,,,.,:(:,.,-,.-.:-.y. ,.,:-,,-,,.:,,,,[.,,_..-,,-,:-.--•.,,.,:„:,.:,,::,,„..,.. ,,.,.-,.......,..:,,,., c wa t er Enterprise Fund Capital Requirements & Funding Strategies ,•, • . _ ,...., • ::-.:-..-•:•:•,• :-.-• ::,. .„.„.,:,::, --„.,,,•:••,,,::,:.:•,:. - -.,..,.: ,...,; , ..:-:.. „, .-,,• ,.-., .:,,: ••„,..,...., ,,,,..„,„•:•••••„•,•:; : „..„1,-„,••:••_•,•:-.--,:,,:,--,„---,-,z ',:-, ;,-:;' '-::.: ,' .--•:•:.,- '. ,' ',- .:•' ..::”.'..',- •-,' i';:::,.",,'• ::,:.:1,-, .:',.:'. 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I _ , ,..3 ----:.-.,:':•,!.,,,.:-.: -,.., .,,, , .._ - r - i I Water Cash Balance Water Fund Cash Balance History Water Enterprise Fund -Cash Balance Balance at Da ember 31 200X Water Fund MRRF t;months't Cash Cash Cash Total Pnbr to 2004, Water and Wastewater Were combined into one fund. 2304 S 2,636,894 4,019 25.7 $ 2,610,913 2005 2,826,951 4,019 26.0 2,830,970 2306 3,052,766 4,019 21.6 3.356,785 2337 3,152,291 4,019 13.2 3,156,310 2338 1.320,497 4,019 13.5 1,324,516 2009 S 1,564,108 S 4,019 15.6 S 1,568,127 2010 S 1,604,281 S 4,019 S 1,638,300 Water & :'tIRRF Fund Cash 4 months'cash 1500055 _.. 2000000 5 w 5::i:s3 j iSNOW 30000 ;6 _....,�s O::ii ' S 2034 2005 2005 2007 2003 2009 21110 n: aseduabraacroon 203522reg.ayV.7n3-dAve.`Faftr'Lc an:Rmaybag-res 2333*S17Q0yros . 2 [ (r1 Rate Increase/ , ,, <,/ _, , - D y • Historical Increases Januar 1 , 2004--- 5% increase to all water January ::. rates I , 2005--- 35% increase to all water January rates (solelyfor thepurpose of coverin a g portion of the cost for the new Third Ave. Water Main) January I , 201 0--- 4.8/ increase F�VEYEAR CP. - 201 ° , AVERAGE PLUS 2% 0 January I , I --- 5. I / increase The increase requested was I3% in 2010, 12% in 20 I I , and adjust annually thereafter by the CPI Additional rate increase is necessar y IncreaseRate 7 / , ( • Proposed Rate Increase Schedule January 1 , 2012--- 13% + 2.8% CPI increase to all water rates O January I , 20 13--- 12% + 2.8% CPI increase to all water rates • January I , 2014--- 10% + CPI increase to all water rates O Adjusting rates annually thereafter by CPI • Justification for Additional Rate Increases 0 Cover operational short falls • Fund Depreciation/Depreciation Plan • Qualify for low-interest loans • Qualify for bond financing • Cover cost of capital infrastructure repairs, replacement and depreciation plan 1E Y [ j L IncreaseRate • Impact on Consumers O January I , 2012--- 13% + 3. 1 % (CP1) increase An increase of 16. 1 % would increase residential rates $6.03 per month • total: $43.50 O January I , 2013--- I2% + 3. 1 % (CPI) increase An increase of 15. 1 % would increase residential rates $6.57 per month • total: $50.07 12014--- 10% + 3. 1J• anuary increase An increase of 13. 1 % would increase residential rates 1 $6.56 per month • total: $56.63 1 i I:, • . - /.:,-,.- ,, , . --;-„ ,: : : . ,,,.,,,,, Community --„. 7 : , Number of Service Connections ( ,. 3500 3000 .. ,,L_ 2500 Total Number of 2000 residential service ■Number of Service 1500 Connections connections by 1000 community , 500 1-1-1-1-1-1- c a\Nt- �• •ctz, aoti oc� o b �i� .eS Hypothetical Monthly Bill $70.00 Hypothetical Monthly Bill $60.00 - for residential users based $50.00 on I OK gal used or flat $40.00 . 11HFIll. residential rate depending $30.00 ■Hypothetical Monthly Bill on community rate $20.00 structure per month in $10.00 household ��• ,,, �, be,' a Sew 49! ��� J• \aow� oCao ���,�t ��`�� - _ 4 r 0 A f ;l I i CommunityComparison 'Graph below includes water and wastewater* i $5.50 ' i ..f • $5.00 k • I _ :' $4.50 l $4.00 • el . . . ,':' J •$3.50 1 $3.00 ®� •�'I D $3.50 m ri L- $2.00 ir^- �. �, $1.501. m N•- r` 1 , , Z. I —f $0.50 j� ! -01 11 ' I 1 7-1 ■'' f ■Non-Operating Revenue J $0.00 r` - ■Non-Operating Expenses _ r s E a`�� .� t .\ek4 , + ~. 1 is ■Depreciation 4o 4, o �t �� ` ... - _..,- •Utility Expenses S�� �o� • ®Utility Revenue 5p VPrt� \b,'' Z X 7 n. -a 7 COMMUNITY Q� J� ��\cs � °= m O ='• y N I m MO NrTCOMPARISON .. : ► ., -. :-: c . 1 ,EXPE.NSES:AN.D,..REVENUES..B"Y cATAGORY i (L, • F • . . . ..„„ . . . „:„_ :,,:•....::.:,t ,,:r.„., Where Revenues Come From..-.„:,,_--,:y: ,,_„-.77,-,:;7,-:, .. . - 1 - 1 '''' . ''''.- . • Operating Revenues (1 • , 0 Residential-- 36% Small General Service-- 10% 0 Large General Service-- 17% 1 - 0 Industrial-- 16% E - ° SMIC-- 6% • 0 , Ship Water Sales-- 6% - . . 0 Miscellaneous-- 9% . I. • Non-Operating Revenues 0 Intergovernmental Investment Income o Grants Contributions from other funds 0 City-generated Equity j { 07 .4 1 1 0. �I Water Outstanding_....„.:..,..,,,,,,:, Debt -,•.',--/ /Z,.:•.-'": ..'' .:;.' t�f r'X � WATER FUND UTST W DEBT AT it V9 . Ili Annuat t tll . °A4 ,�i ,8i9 114•.M1 19 'me . f 1,0 ---171-1.4.--D-'71.y • • • .F j. t..5.: • 9 Status of depreciation reserves 0 Water = $4,019 in M vs assets of • $6.4 million*; $3 million end of useful life• - . , - - • o Estimated cost to replace ace 114,701 linear feet of is approximately 34.5 M pipe PP y ao l III • I t I ' Water Capftal Needs ,_.... ., ,.. .,,,, .... ____, WATER ENTERPRISE FUND - Capital Infrastructure Needs ^ — � Critical Risk HighRisk 'Moderate Risk!! Total _ t 2010, I 1 + -:--,,Y ` # ___..__...____ _._-_____._ 2011 ________i_________.,___________________+_____________4_' _.p__ _ ._.__.�_ - i � 2012 2,536,000 1,000,000 ! 230,000 3,766,000 _ ; _2013( 400,0-0-0-t 1,000,000 210,000 1,610,000 1 ; 2014 25,000 ! 1,000,000 ? 435,000 1,460,000 r 1 _ ----,- 2015! 50,000 1,00-6,000 i 800,000 I 1,850,000 i _ _ y- W2016 50,000 1,000,000 ; 150,000 1,200,000 'I ^T — ; 2017! 50 0 s 00 1 00000 0 150 000 1_ __ 200 000 i 20181 50,000 1;000,000 150,000 1,200,000 - ^- 2019+ - 1,000,000 150,000 1,150,000 - : . i $ 3,161,000 l $ 8,000,000 ? $ 2,275,000 i $ 13,436,000 !; 1 i . :.•;_-___.... 4,500,000 ----- .__-._., 4,000,000 __._ 3,500,000 —� 3,000,000 - 1.------ 2,500,000 --- i _— 2,000,000 — — ', Moderate Risk ___—_I . _ 1,500,000 Ti . 1,000,000 , I High Risk .1 500 II II , I I , ■Critical Risk ,000 o _+ tiN/ ti�NY ti�N, ti�N ti�N, ti�N' Otis �' Otis ONoi ti ti ti ti 1 S P CP Critical Capital Needs 2012-2017 ---. Likely to Fail in the Next 5 years, must be accomplished • Water Storage Tank- $2,061 ,000 • Refurbish #4 Production Well- $85,000 • Refurbish Lowell Canyon Tanks- $715,000 • Gateway Tank Roof- $300,000 . Total = $3 , 161 ,000 • 12 i , II .-.,. - , .. t j.,. ":--,,,:..1.l.-. .:.".',":',:,'.1.'� 'II , Ir 220K Gallon Tank 400K Gallon Tank . :j• • I ' IIR • {• 40 � I "'{ 'iu , iG Ji } Y . i' �� li I J 7 µw- r2. qt1 6 i M , ij �I�i�I II��v I• 1` i r l(I�I , i I ( V I , ,tril� 1, ��I!� ''� t ' - ; , r Iill, ,1',11',.1( _ I t I �,t .. S • r i ` , JI+IVII1 110111— 11/41'.'',i-,',:47-‘1jjG I7 ,. 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Foster & Associates Water Study is completed but will probably include the following needs: UAbandon Wells at Fort Raymond U D i stri b uti o n Piping UPgrades Plan for replacement discussed on slides 19-20 • • \<0. 17 ' it 1 Moderate Risk2012-2022 Capital Needs Continuous Increasing Cost to Maintain & Operate • Depreciation plan for infrastructure past useful life Total of $3MIL o Make plan to repay over next 20-40 years o Total required to repay in 20 years- 150K per year • Facility Control Upgrades- $80,000 • GIS- $60,000 (waiting for cost estimate from comm. dev.) • Generation for water wells- $285,000 (will start RFP as soon as funding is identified) • New production well (#7)- $650,000 (planning is underway) Total- $ I , 140,000 18 . • _ _ _ tl R Annual RCritical1 eplacement of , _ Infrastructure f Planning for Depreciation and Replacement 2012-2032 (\\ Replacing 5% of waterlines annually • A total of 73, 119 linear ft of A.C., Cast Iron and Wood Stave pipe needs to be replaced • Replacement costis approximately $300 per linear foot O This would require approximately $ 1 MIL in additional funding annually O Developing, funding and implementing a depreciation plan is critical to the success of the water system !9 \I 1 1 Annual Replacement ' 'of Critical Infrastructure Continued • Ductile Iron Pipe (DIP) o DIP systems could have a life expectancy of over 100 years, but the harsh climate of Seward could reduce that considerably o After all of the A.C., Cast Iron and Wood Stave pipe is replaced with DIP, the replacement schedule for pipe should be on at least a 50 year cycle or 1 .25% of the total 122,232 linear feet of pipe o This would require approximately $500K in additional funding annually 20 F1 Capital Rand Depreciation Funding Strategies 7/ - • Options A--- Fund all Critical Risk, Moderate Risk projects and Depreciation Plan needed for the water system through 2022 • Option B--- Fund Critical Risk and moderate risk projects needed for the water system through 20 17 • Option C ---Fund Critical Risk projects and Depreciation Plan needed for the water system through 2022 • Option D --- Only fund Critical Risk projects needed for the water system through 20I 7 21 ,--_ ___ F: , - , ,,./ , Option A- $5,202,000 additional revenue , , , y " (critical and moderate capital needs and depreciation plan) r • New Water Tank $2.07M (received 1 .99 M in State funding) � _ • Low interest loan for $2.07,with ADEC, to be paid back over 20 years at 1 .5% interest with annual payments of approximately $ 106,000 (with loan, 1 ;; grant opportunities may become available) • Raise lowest 3 Block Rates of Tariff to $ 1 . 14/ 1 ,000 gallons for usage over 3,000,000 gallons/month for at least 6 months during a twelve month period • Increase rate quoted in special contracts and special retail water sales agreements in accordance with the proposed rate increase • Raise water rates by. 13% + 3. 1 % (CPI) in 2012, 12% + 3. 1 % in 2013, 10%+3. 1 % (CPI) in 2014 and adjust annually thereafter by the CPI • Increase mill rate by 1 .0 mils and give 70% of the increase to Water and 30% of increase to Wastewater • Apply for USDA rural development grants and loans to help subsidize depreciation plan 22 { " -E ! - .,, , Option $4,053 ,000--yr , B- additional revenue (critical and moderate capital needs) • New Water Tank $2.07M ((received 1 .99 Mil in State funding) • Low interest loan for $2.07 with ADEC,to be paid back over 20 years at 1 .5% interest with annual payments of a roximately $ 106,000 (with loan, grant opportunities may become available) • Raise lowest 3 Block Rates of Tariff to $ 1 . 14/ I ,000 gallons for usage over 3,00.0,000 gallons/month for at least 6 months during a twelve month period • Increase rate quoted' in "special contracts" and "special retail water sales agreements" in accordance with the proposed rate increase Raise water rates by 13% + 3. 1 % (CPI) in 2012, 12% + 3. 1 % (CPI) in 2013, I0%+3. 1 % (CPI) in:2014 and adjust annually thereafter by the CPI • No mill increase • Apply for USDA rural development grants and loans 23 i , F I 1 - -. Option C- ,$4,063 ,000 additional revenue ,%! (critical capital and depreciation plans needs only) _ • New Water Tank $2.07M (received I .99 M in State funding) i Low interest loan for $2. • 07 with ADEC, to be paid back over 20 years at 1 .5% interest with annual payments of approximately $ 106,000 (with loan, grant opportunities may become available) j Re-organization of Public Works to enable a more concentrated effort toward successful grant acquisition I • Raise water rates by 13% + 3. 1 % (CPI) in 2012, 12% + 3. 1 % (CPI) in 2013, 10%+3. 1 % (CPI) in 2014 and adjust annually thereafter by the CPI • Reduce subsidy for Block 3 Water Rates i Use portion of cruise ship head tax 24 r i f I Option D $3 ,063 ,000 additional revenue (critical capital needs only) • New Water Tank $2.07M (received 1 .99 Mil in State funding) s: • Low interest loan for $2.07 with ADEC, to be paid back over 20 years at 1 .5% interest with annual payments of approximately $ 106,000 (with loan, grant opportunities may become available) • Re-organization of Public Works to enable a more concentrated effort toward successful grant acquisition • Raise water rates by 5% + 3. 1 % (CPI) in 2012 and 2013 and adjust annually thereafter by the CPI • Reduce subsidyfor Block 3 Water Rates . . . • Use portion of cruise ship head tax 25 4:2\4 , Recommendation • Pursue Option A: ° New Water Tank $2.07M (received 1 .99 M in State funding) • Low interest loan for $2.07 with ADEC, to be paid back over 20 years at 1 .5% interest with annual payments of approximately $ 106,000 (with loan, grant opportunities may become available) O Raise lowest 3 Block Rates of Tariff to $ 1 . 14/ 1 ,000 gallons for usage over 3,000,000 gallons/month for at least 6 months during 4:. a twelve month period • Increase rate quoted in special contracts and special retail water sales agreements in accordance with the proposed rate increase 0 Raise water rates by 13% + 3. 1 % (CPI) in 2012, 12% + 3. 1 % in = 2013, 10%+3. 1 '% (CPI) in 2014 and adjust annually thereafter by the CPI O Increase mill rate by 1 .0 mils and give 70% of the increase to Water and 30% of increase to Wastewater .a 1 0 Apply for USDA rural development grants and loans to help subsidize depreciation plan , R • astewater nter rise and Capital Requirements & Funding Strategies - i 27 I 1 , i , „, Wastewater Cash History t G / /,---------, 77 f ( Wastewater Enterprise Fund-Cash Balance j Balance at December 31, 200X 1 Wastewater Fund MRRF #months' c -. `_Cash Cash Cash Total Prior to 2004, Water and Wastewater were combined into one fund. 2004 $ (129,865) 163,938 -2.7 $ 34,073 2005 76,203 163,938 1.5 240,141 2006 387,284 163,938 8.3 551,222 2007 517,133 163,938 8.0 681,071 2008 356,104 163,938 4.3 520,042 2009 395,033 163,938 558,971 2010 $ 396,006 $ 112,115 5.7 $ 508,121 I, r Wastewater& MRRF Fund Cash #months'cash S800,000 5700,Q00 8:0 56oQ,00o 8.3 _ 4:3" 6.0 SOO,000 ,. ,. S400,000 ■1[RRF S300,000 -- 1,5 5200,000 ,2 7 ['Wastewater Fund S100,000 • I S- S(100,000) - taa.-200 ----2006 , ,, 2007 2008 2009-7--, 2010-7 i7 ` S(200,000) , . 28 I Rate I n ease • Historical increases 0 January I , 2004--- 5% increase to all wastewater rates . JanuaryI , 2005--- 15% increase to all wastewater rates Januaryy I , 2010--- 4.8% increase FIVE YEAR CPI AVERAGE PLUS 2% = ° January I , .2011 --- 5. I / increase The increase requested was 20% in 2010 and 10% in 201 1 adjustingto the cPI annuallythereafter Additional rate increases are necessary .F / I Rate I n crease if /. , / 0 Pro • ..- . Proposed Rate Increase Schedule o January I , 2012--- 10.5% + 3. 1 % (CPI) increase to all wastewater rates • January I , 2013---8.2% + 3. 1 % (CPI) increase to all wastewater rates o January 1 , 2014-- 5% + 3. 1 % (CPI) increase to all wastewater rates ° Adjusted annually to CPI thereafter • Justification for Additional Rate Increases • Cover operational short falls Qualify for low-interest loans • Qualify for bond financing • Cover cost of capital infrastructure repairs, replacement and depreciation plan q , , Rate I n crea7.7-- .-- se 1 : ( \ • Impact on Consumers , , ___ ° JanuaryI , 2012--- 10.5% + 3. I % (CPI) increase • An increase of 13.6% would increase residential rates II $6.46 per month • total: $53.94 I ID January 1 , 20 1 3---8.2% + 3. I % (CP1) increase o An increase of I I .3% would increase residential rates $6. 10 per month • total: $60.04 January 1 , 2014--- 5% + 3. 1 % (CP1) increase ® An increase of 8. 1 % would increase residential rates I $4.86 per month ' • j total: $64..► ( 0 30 I 1 I ]4 1111 1 Communityom arison_______� Number of Service Connections \ 3500 `\'-._.__:--- 3 000 << 2500 Total Number of 2000 residential service 1500 ■Number of Service connections by '! 1000 Connections • I ` 500 community 0 IIIIHIIII c'\\& .4- ��4 \aeti O�c.a• 0A' Hca `yes cp' Cy Hypothetical Monthly Bill $80.00 Hypothetical MonthlyBill Yp $70.001,1 _ for residential users based $60.00 _ tl' M j on 10K gal used or flat $50.00 10 L residential rate depending $40.00 7 i. - $30.00 01 �. 0 Hypothetical Monthly Bill on community rate $20.00: _ 4 t':. 1 �' 1 dF structure per month in $10.00 --- ' :—, �� household $0.00 , 4 , E , , , , ' , , . .e a`.' mac,` 66/' o60. x04'1' eia •Sez cp .(;-o .F- Jv 50\e° e Got Sz'k ,e�' . , _ . . . , ./ ,...„ Comrnunfty Comparison- ....:.7 . , $5.50 Y $5.00 ' - $4.50 c -$4.00 J $3.50 ammilli ill n $3.00 p $2.50 . . : u, $2:00 �'_` 1,___ ® 1 ..t._.: O $1.50 1 e , 1 . al----1 11. 5 r i'' ' I - ZO $I.00 �,I ' --1 •Non-Operating Revenue J $0.50 .�: 7 i —1 $0.00 ^� 1= F. air •Non-Operating Expenses •2* \(..,b, I �� 1 ' Depreciation i III `f o `��w o�.�t C •Utility Expenses to :�.: �► .� ���� ���. -mss► ,: . . C ■Utility Revenue �o\ao �O�t° . . . Y• - O -v m m Kot• \ate 5 Z X ? Q -o S COMMUNITY Qe Jb' ��`�� 71 m O Q. m y q j y 3 v L.m w i::,1:,:'.-, ; 11.100SjlttNtthitk5MOAktgdWoOPAUPel 2 g. 4. , OA :; :E. PENSESAND.REVE.NUES..B► f..` CATAGOR`f 1 f 3A . i / I . �: ,, 1, , . ., Where evenues ome From . :77 : • Operating Revenues ° Residential-•- 55% ° Small General Service-- 16% li Large General Service-- 23% ° SMIC-- 6% o Miscellaneous-- I -..: :- :. :,, ,,, • Non-Operating Revenues ° Intergovernmental o Investment Income ° Grants 1 • Contributions from other funds City-generated Equity . ,. 1 - j E . . . . . ./ ., :. , ....., , Wastewater Enterprise Fund- _ .� - 8888 _� WASTEWATER ENTERPRISE FUND - Needed Repairs & Replacement of Existing Assets i 8888 __ _ 8888 . �__ -__ ___._� _ a 8, _,.�...-__ _ .. .,�.___ _..._..___._.� 8888 /7.,/,'-'7,---- , �_ �V rCritical Risk High Risk (Moderate Riskj Total �'� % __8888. __----- � 2012__ 305,000 ( 1,050,000 100,000 1,455,000 f P _ 2013 155,000 800,000 1 75 000 !� 1 030 000 F ' 3 a > _..._. 881 8888 ,._._�_—- _ -'--2014 195 000 800,000-1 75 000 1,077—Cs,-0-0—e1-------- ______________1_ _ -� .:--.:.--�-' 2015 i - _____�_.._._—___�. __---___-- ___..____.._.__ 2016 i 800,000 1________.75,000,�_ 875,000 f -; �_. _ 8888_ _ _ �; __m..0,_____________, s � 800,OOOM; 875,000 I 2017 i —.. - - 800,000 1 75,000 �' 875,000 ; y �' 8888 �____. .__.__._ .___._._�_ __ �____ ___ ____ _..7 ' 2018 800,000 8888_ 800 000 i 0 - - _.� I _ ^8800 , _ �- _-75,00 i 875,000 1 . e..,. ;•. c---- 2019' - Op - �� 800,000 75,0 875,000 . .. .._.._i_-__. _, ._i _ _$ 655,000 1 $ 6,650,000 1 $ _625,000 $ 7,930,000 _i_____________.1 - . 1,600,000 __.._ 88 — - 1,400,000 _i _ 1,200,000 . _i 1,000,000 , _ 800,000 111 II ill' III ' i . 600,000 ® Moderate Risk _± 400,000 ' II 111 II . II IIl ■ High Risk 200,000 i . 111 , , I I ■ Critical Risk 0 -__ _ _€ ___i___._____..._ _____-i _-_-.._.�._...�..:�._.--- -'-"i '_,.._.__ - _ 8888_.- _T..._ ._..�.________._..-__._,_____, _.__ I . _.._Y 35 { ______.,„ ,,. . , „ , . , . . i . „ „. ,. ' .:: , / i �depreciation_ - tatus o reserves _:'..,/ , - . . :/ /.:. -, .. .. .' . , , ,. Sewer $ 1 12, 1 15 i MRR vs assets ofI. ::,,,:,.,,.,: . , ::,..,...:...:.i . ,,1$ 11 .8 million*; $75010 end of useful life; _ - f 0 estimated cost to replace 21 p miles of ,I 1 underground sewer lines is $44 M . , , g r . , . . __, 1 i-TA-I AV k .(� --------- - . tQiiX.A-C-bibli.A,..2r- O 36 Wastewater Outstanding Debt . , WASTEWATER FUND OUTST• 41KG DEBT AT 111X)9 interest Annuait Annual Debt Issue, Ram Balance at 12V9 Pnogi par Interest Mammy 199.5 DalryM Sewer'Loan 1.53%, 6,6E2 11,333 123 Jtly 201:4 19V: Lowell Point Sewer Loan l'.53% 233,52 55,2.-SE 4,346 Jul 2014 24,121 S 57.571 5 4,4605 37 z4) : r Critical Capital Needs 2012-2017 Likely to Fail in the Next 5 years, must be accomplished `� Forest Acres L.S. Generator- $205,000 „ . 6 DoubleWaHFuellanks- $ IOO,000 SMIC Bypass Valving- $ 155,000 - s # 1 Stand-byGenerator- $ 195,000 0 NoneAccomplishedasofJuly2ol Scoping ; is in progess . . . - � I •TOTAL = $655,000 38 Lowell Point Sewer Pond Lowell Point Sewer Treatment Plant 1• : � r^:+ � 7t • FY a�3 �-3. rr4,:nom ' 'x J x Nk - • 1 a r S P` "'a"S`' N. " .+.r. ,* I i gy •`x y •'r '�( • 71 'x: ..�.�h -�y: �.< rr4 "� 1 t( ll : t r� r _ ms ! ,t -'1 , ' ,t ry 4'N`«.- . ...,...,,..=,-.., ,.----0'. .k ' j " _ <'s: ---,.it'', •.''," -Acw. +. r%cT''�l': ;.i ' I 6 ,• � .. .. - , wl..,-.,,.•.., „,�.. "" ..,.,. _ , it i �-. . n .3 l: -- i' i:. I. ,3' 4:171,1!,A.% tt 3c t Ccy z I h d Mr rifrkr ak _ 4 -�' l ' • r-1n. rt VI I . M1S 1. b'.,h •'.w.''.,f �i r{ �+". f' - Via.' ! y. I_ ii.. {- r h, 1. { +� r 1i _ '� Pow I 1 I ��, ., 1 t it 11 --,:•.‘f.,'•,- R - t w, � ,ie., �►. 2 - .. 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SYt f. i ,.. • , cube van that_ has =� Y,, . _ " ' .� If-} been trans',formed , into"' a :mobile. work "si , +I " t 4 gg 4 .... 4 HA• ,3 _ _ :- to ion:: Money wel'I' ,: J ", a r y iN 1 Y f Y ',,,k,: '''''—°'‘- c, $'� "�',. �.y Z [ .r r - , _ ♦ it 0 3 r------‘'..---------, may`y" i w'., The Cube .- , ;i I }• •. . b i t • ssB���Q f 1 1 • 1 , -. .. _, i:, L , , . . . . i F ,, , High RIsk Ca .tal Needs 207-2022'1( _ Likely to fail within 5- 10 years ( t 1 A SMIC Lower Lift Station (eng ineerin . , g • . only)- $250,000 0 Still needs to be done ,! . . 1 . , , • , . . . . . +Total = $250,000 .. ,' . . .. . ,, , 44 i 1 I ,.. ., !' - Moderate Risk Capital Needs 2010-2020 I Moderate Risk- Continuous Increasing Cost to Maintain & Operate • Depreciation plan for infrastructure past useful life Total of $750K. Make plan to repay over next I0 years = ° Total required to repay in I 0 years- 75K er year P ® L. P. Sludge Pile Disposal- $320,000 g P ®This could be reduced to $25K, I I +Total = $327,500 1 45 1 { Annual Replacement ' 'of Critical Infrastructure 4� 7 Planning for Depreciation and Replacement 2012-2062 • Replacing 2% of sewer pipes annually ° A total of 125,505 linear ftPiP e that needs to be inspected and systematically replaced over the next 50 years ° Replacement cost is approximately $300 per linear foot ° This would require approximately $800K in additional . _ . P y funding annually s° Developing, funding and implementing a depreciation , plan is critical to the success of the sewer system 46 . . ._ Projects Requiring Funding to Complete , / 7 , • Security- $50,000 • Manhole Refurbishing- • GIS - $60,000 • Systematic Sewer Pipe Replacement y Annually +Total = $ 1 ,030,000 47 L, .� Capital Replacement Funding Strategies -7/7-:777 B • -t. � .. . , . • O ti p onsAl or A2 --- Funds all Critical/High/Moderate Risk projects and Depreciation needed for the Wastewater System throu h 2022 through -1 . � Option B --- Fund only Critical & High Riskprojects e Option C---- Fund Critical Projects and Depreciation Plan 48 • ,:. . Option AI - $2,262,500 . . (critical risk, high risk, & moderate risk through 2017) • Raise sewer rates by 10.5% + 3 . 1 % (CPI) in 20129 8.2% + - 3 . I % in 2013 , 5%±3 . l % (CPI): in • , 2014 and adjust annually thereafter by the CPI • Have cash at hand to help qualifyfor loans • Developlan to successfulI u grants • P yPrsue • 49 Option A2 - $2,262,500 ,. risk, hih risk & moderate risk(critical g through 20 17) G) Use .3 mils (of the I mil increase for the water system) for the wastewater system Raise sewer rates by1 :0.5% + 3. 1 % (CPI) in 2012 8.2% i + 3. 1 % in 2013, 5%+3. I % (CPI) in 2014 and adjust annually thereafter by the CPI Re-organization of Public Works to create • Superintendent/Project Manager position to better g enable a more concentrated effort toward successful grant acquisition 't 50 Option B — $905,000 d '. (Critical & High Risk Projects Only) % Raise sewer rates by 10.5% + 3 . 1 (CP1 in2012, 8.2% + 3 . I % in2013 , 5%+3 , l %I % '(CPI) in and adjust annually y thereafter bythe CPI n1. 51 Recommendation • Pursue Option A2: 0 Use .3 mils (of the I mil increase for the water system) for the wastewater system ° Raise sewer rates by 10.5% + 3. 1 % CPI in 2012, 8.2% + 3. 1 % in 2013, 5%+3. 1 % (CPI) in 2014 and adjust annually thereafter by the CPI ° Re-organization of Public Works to create Superintendent/Project Manager position to better enable a more concentrated effort toward successful grant acquisition -. if